TNAG-1041-FCO40-1291-Future-of-Hong-Kong-1981 — Page 109

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after that date, thereby preventing a slide in confidence.

the At lea At least we would need Chinese acquiescence in amendment to

the 1898 Order in Council by which British administration

over the New Territories ends in 1997. Relinquishment of

sovereignty would require an Act of Parliament. Provided

that the Chinese agreed, recognition of their sovereignty

could legally be combined with continuing responsibility by

HMG for domestic administration and external relations.

7.

་

We should not make a premature offer on sovereignty.

But we should be prepared to discuss it when opportune.

This point may not be reached when the Prime Minister visits

China, but she should have full latitude in discussion.

8.

The Prime Minister and I have already given the

Chinese notice of our concerns. We shall need to remind them

again before the Prime Minister's visit of her intention to

raise the problem, without making specific proposals that they

might reject immediately. The Lord Privy Seal's visit in

January 1982 will provide an opportunity for this, as will the

discussion later on the agenda for the Prime Minister's visit

Ministers are asked to approve the contingency paper

and to agree that if necessary a concession on sovereignty

9.

should not be ruled out in order to obtain bankable

assurances from Peking.

Foreign and Commonwealth Office

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